Bitcoin prices slid sharply this week, mirroring the turbulence seen during earlier 2025 market corrections. Nearly $20 billion in BTC positions were liquidated, marking one of the largest single-week washouts since Q1. Yet while many traders faced losses, some short positions saw major gains, including a $735 million short that perfectly timed the downturn, sparking speculation of insider moves.
Key Levels Break as Market Repeats Q1 Pattern
Bitcoin dropped 7% to $109,000 on October 10, erasing nearly all gains from late September. The $116,000–$119,000 support range failed, triggering rapid liquidation of leveraged longs. Analysts note that the pattern resembles the Q1 decline, when a series of tariff announcements from Washington sent BTC down 30% in a few weeks.
If that setup repeats, a retest of $100,000 remains possible. However, technical signals suggest the correction may not extend as deeply this time, with some traders pointing to stabilizing on-chain flows and reduced leverage.
Bitcoin Dominance Climbs as Altcoins Weaken
Even amid the downturn, Bitcoin’s market dominance rose above 63%, up more than 2% on the week. The move reflected sharp altcoin losses, as investors shifted capital back into BTC for stability. The Altcoin Season Index fell to 47, signaling a broader market preference for lower-risk exposure.
This trend mirrors early 2025 behavior, when Bitcoin dominance peaked before a recovery rally later in Q2. The current divergence suggests BTC may be forming a short-term base near $110,000, supported by renewed accumulation and reduced speculative trading.
Outlook: Stabilization or Further Decline?
Traders remain cautious, watching for whether $110,000 holds as support. If selling pressure eases and capital continues flowing back into BTC, a slide toward $100,000 may be avoided. But with macro and policy uncertainties still driving volatility, sentiment remains fragile heading into the final quarter.
